just days after the president's re-election, the f.h.a. released its 2012 actuarial report which revealed that the economic value of the f.h.a. fund has fallen to negative $16 billion. that means the fund's capital reserve ratio now stands at a negative 1.44%. this news is a very disturbing to us and to the secretary. for those of us who have been concerned about the health of the f.h.a. for years, the problems of the federal housing administration have unwell loan. during the housing boom, the f.h.a. guaranteed millions of risky mortgages with low down payments. we are reaping that now. these mortgages have resulted in billions of losses to the f.h.a. the federal housing administration has made matters worse by failing to come to grips with the magnitude, mr. secretary, of the problems. in 2007, as the federal housing administration's poor financial position was becoming clear to all, including this committee, i urged the f.h.a. to devise a credible plan to improve its finances. i stated then "before the taxpayers are faced with greater l